There are three parts to Question 23. All questions here must be answered. Please clearly outline which question you are answering by clearly labelling it as a, b or c.

You have just received your superannuation statement. Your friend, who has no idea what superannuation means, asks you the following questions:

Q23a) What does the defined contribution portion of your superannuation statement mean (also called 'accumulation')?

Q23b) Your friend also asks why you selected the 'growth' option as your investment strategy. Explain what this investment option provides you with and how it fits with the stage of your life cycle.

Q23c) You then tell your friend that you are contemplating setting an SMSF. What does this mean? Highlight to your friend two advantages and two disadvantages of setting up an SMSF.